How Digital Media And Data Analytics Change Marketing Strategies
With the rapid development of digital media and data analytics, marketing strategies are evolving like never before. Before digital social media became prevalent, marketing carriers such as radio, televisions, and billboards played an essential role in a company’s marketing strategies. However, in 2017, TV ad spending will only be 35.8% of total ad spending in the US. Meanwhile, digital ad spending will be 38.4% of total ad spending in the US, which surpasses TV ad spending. Data analytics enhances an advertiser’s ability to get beyond campaign execution and focus on how to make customer relationships more successful. Digital media and data analytics changed the way advertisers develop marketing strategies and the way they recruit young talents. Digital media and data analytics provide advertisers more creative and more dynamic ways to plan marketing strategies. Here are some examples how digital marketing and data analytics changes businesses:
Quick response strategy to the market
The big data analytics platforms of today can perform complicated processes at fast speeds, allowing for real-time analysis and insights. For instance, in the past, advertisers only can re-plan their marketing strategies after the promotion is done. It takes a few weeks or even a few months. However, advertisers of today can shorten the time to customers’ insight and optimize their marketing strategy immediately by using data analytics. It allows executives to make business decisions and take immediate action based on the latest and reliable information.
More customer engagement by personalized marketing
Digital advertisements are more customized and personalized. Before digital social media became prevalent, advertisers could only choose carriers such as radio and televisions which cannot target users specifically. By contrast, digital media and data analytics allows advertisers to better target users with more personalized ads that users would like to see. Based on the latest research, consumers crave a personalized marketing experience and 71% of respondents prefer ads tailored to their interests and shopping habits. Furthermore, personalized ads also boost engagement. Research shows that 44% of respondents were more willing to provide information including name, address or email address to get the discount from personalized marketing.
Marketing Talent Management: Analytics Savvy
Digital marketing has changed companies' talent management strategies. As traditional marketing is shifting rapidly into digital marketing, companies will require a brand new team that is familiar with data analytics to gain actionable insights that can lead to competitive advantage. According to recent research, Digital Marketing expertise again leads the pack in 2016 for the most desired skill sets and the demand is expected to keep growing in the next few years. Moreover, research shows that 90% of all marketing roles require some digital marketing experience or analytical skills. That is, people with strong statistics knowledge and programming skills will be a competitive candidate in the job market.
Although digital marketing has become the mainstream in marketing strategies, traditional marketing still has its advantages. For example, traditional marketing is more broadly accessible because traditional marketing doesn’t rely on customers having access to the internet or a smart device. In addition, traditional marketing reaches a broad demographic because it doesn’t target individuals, so potential clients are not overlooked. With data analytics, traditional marketing is more effective and efficient than ever before as well. In sum, a company should try to strike a balance between digital and traditional methods, optimizing the company's marketing strategies.
Written by: Kai-Hsun Wang, Menefee Associates Consulting Intern